WallStSmart

Johnson & Johnson (JNJ)vsRigel Pharmaceuticals Inc (RIGL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 32046% more annual revenue ($96.36B vs $299.77M). RIGL leads profitability with a 121.5% profit margin vs 21.8%. RIGL trades at a lower P/E of 1.7x. RIGL earns a higher WallStSmart Score of 65/100 (B-).

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

RIGL

Strong Buy

65

out of 100

Grade: B-

Growth: 6.0Profit: 9.5Value: 8.3Quality: 6.5
Piotroski: 5/9Altman Z: 0.87
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

JNJSignificantly Overvalued (-71.4%)

Margin of Safety

-71.4%

Fair Value

$135.80

Current Price

$232.77

$96.97 premium

UndervaluedFair: $135.80Overvalued
RIGLUndervalued (+87.7%)

Margin of Safety

+87.7%

Fair Value

$283.28

Current Price

$29.93

$253.35 discount

UndervaluedFair: $283.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$536.54B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
25.9%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

RIGL6 strengths · Avg: 9.5/10
P/E RatioValuation
1.7x10/10

Attractively priced relative to earnings

Price/BookValuation
1.4x10/10

Reasonable price relative to book value

Return on EquityProfitability
91.1%10/10

Every $100 of equity generates 91 in profit

Profit MarginProfitability
121.5%10/10

Keeps 122 of every $100 in revenue as profit

Debt/EquityHealth
0.119/10

Conservative balance sheet, low leverage

Operating MarginProfitability
20.2%8/10

Strong operational efficiency at 20.2%

Areas to Watch

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
25.8x4/10

Moderate valuation

PEG RatioValuation
2.912/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

RIGL3 concerns · Avg: 2.3/10
Market CapQuality
$593.55M3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-30.2%2/10

Earnings declined 30.2%

Altman Z-ScoreHealth
0.872/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.

Bull Case : RIGL

The strongest argument for RIGL centers on P/E Ratio, Price/Book, Return on Equity. Profitability is solid with margins at 121.5% and operating margin at 20.2%. Revenue growth of 10.3% demonstrates continued momentum.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Bear Case : RIGL

The primary concerns for RIGL are Market Cap, EPS Growth, Altman Z-Score.

Key Dynamics to Monitor

RIGL carries more volatility with a beta of 1.18 — expect wider price swings.

RIGL is growing revenue faster at 10.3% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - GENERAL industry trends, competitive dynamics, and regulatory changes.

Bottom Line

RIGL scores higher overall (65/100 vs 59/100), backed by strong 121.5% margins and 10.3% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Johnson & Johnson

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.

Visit Website →

Rigel Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Rigel Pharmaceuticals, Inc., a biotechnology company, discovers and develops small molecule drugs to treat blood disorders, cancer, and rare immune diseases. The company is headquartered in South San Francisco, California.

Want to dig deeper into these stocks?